Israel has awarded natural gas exploration licences to BP, Socar and NewMed Energy as part of efforts to enhance domestic gas reserves and expand exports.
The consortium, which jointly bid for two offshore blocks in 2023, will explore Cluster I near the Leviathan field, reported Reuters. This marks BP’s first involvement in Israel’s natural gas sector.
Each company in the consortium will hold around one-third of the rights in each licence, with Socar acting as the operator.
Cluster I covers an area of 1,700km² in the Mediterranean Sea and is located in the northern part of Israel’s economic waters.
The consortium plans to conduct initial seismic and geological surveys, followed by drilling based on the survey results.
Israel’s Energy Minister, Eli Cohen, said: “Natural gas is a strategic asset that strengthens our economic and diplomatic standing worldwide, particularly in the Middle East. That is why we are working to expand natural gas production for both the domestic market and exports, especially in these times.”
The gas-rich offshore basin that stretches across Egypt, Israel, Cyprus and Lebanon has attracted global energy companies, especially as Europe seeks alternatives to Russian gas following the Ukraine conflict.
The Israeli Energy Ministry has announced that more licences are expected to be granted, with a fifth bidding round planned for later in the year.
Israel’s natural gas exports to Egypt and Jordan increased by 13.4% in 2024, according to the ministry.
The country aims to become a regional energy hub, committing to supply natural gas to Europe, the report said.
NewMed Energy recently announced a six-month delay in the planned expansion of the Leviathan gas field, with work now expected to resume in April 2025.
NewMed holds a 45.34% stake in Leviathan, with the operator Chevron Mediterranean holding 39.66% and the remaining 15% held by Ratio Energies.
